X Corporation acquired 80 percent of Y Corporation’s outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: XCO Y CO Assets $2,000,000 $750,000 Liabilities $ 750,000 $400,000 Common Stock 1,000,000 310,000 Retained Earnings 250,000 40,000 Liabilities & Stockholders’ Equity $2,000,000 $750,000 At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the non controlling interest should amount to Select one: a. 137,500 b. 215,000 c. 107,500 d. 86,000
X Corporation acquired 80 percent of Y Corporation’s outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: XCO Y CO Assets $2,000,000 $750,000 Liabilities $ 750,000 $400,000 Common Stock 1,000,000 310,000 Retained Earnings 250,000 40,000 Liabilities & Stockholders’ Equity $2,000,000 $750,000 At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the non controlling interest should amount to Select one: a. 137,500 b. 215,000 c. 107,500 d. 86,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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X Corporation acquired 80 percent of Y Corporation’s outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both
corporations reported the following:
XCO Y CO
Assets $2,000,000 $750,000
Liabilities $ 750,000 $400,000
Common Stock 1,000,000 310,000
Retained Earnings 250,000 40,000
Liabilities & Stockholders’ Equity $2,000,000 $750,000
At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the non controlling interest should amount to
Select one:
a. 137,500
b. 215,000
c. 107,500
d. 86,000
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